Market Recap: Stocks Roar into Expiration Friday

Corporate earnings wowed investors.

Stay Connected

The equity markets rallied today on corporate earnings. The Dow Industrials gained +228 points, or +1.8% to 12849, the S&P 500 added +24 points, or +1.8% to 1390, and the Nasdaq Composite closed +61 points, or +2.6% to 2402.

The markets felt a sigh of relief with earnings from the financial sector as Citigroup (C) reported first quarter results this morning. The largest U.S. bank by assets posted a second consecutive quarterly loss of -$1.02 per share; however, figures were better than consensus estimates. Banking shares surged even as the bank revealed at least $15 billion in writedowns, according to Bloomberg.

Mr. Practical; however, offered a different perspective on the Buzz:

"Citigroup's earnings report this morning is a confusing mess. Although the bulls love it, any accountant looking through the numbers would notice right away how much the company's financial condition continues to deteriorate and how many tricks it can use to hide that fact. Moody's put them on negative watch and Fitch actually downgraded them."

Elsewhere, Caterpillar (CAT) helped move stocks higher. Shares of the global industrial giant jumped after soundly beating estimates for 1Q. Although in the conference call the company said North American sales were weaker than expected, CEO Jim Owens reassured the bulls that the company could weather a "recessionary storm" in the U.S. According to Briefing.com, the company said it could hit earnings targets for the next quarter due in part to a declining dollar and continued investment in infrastructure around the world. CAT shares added +8.5% to $85.28.

Other stocks in the sector moved higher as well. Deere (DE) hit a new 52 week high to close +3.5% to $92.68, as well as Joy Global (JOYG) +5% to $76.71, and Paccar (PCAR) gained +2.6% to $48.67. Check out Toddo's Freaky Friday Potpourri.

The tech sector was boosted by Google (GOOG). Yesterday the company beat estimates by $0.32 per share with 1Q earnings coming in at $4.84. Revenues minus traffic and acquisition costs rose 45.7% on a year-over-year basis to $3.7 bln. GOOG shares surged +20% to $540.87. Other tech notables included Apple (AAPL) +4.48% to $161.40. Research in Motion (RIMM) +4.07% to $123.30, and Baidu (BIDU) gained +10% to $341.50. See Professor Jeff Macke's Lessons From Google's Pop.

Commodities took a steep dive early this morning, but crude oil recovered sharply to hit a new record high. Professor Adam Michael gave his thoughts after the close in commodities:

"The COT reports are out and commercials actually reduced their net short position in crude despite crude closing at near $114 on Tuesday (last day of data in the current report). The net short position by commercials is about equal to what it was with crude at $90 in December...this is bullish for crude."

Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.